Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government Makes New Zealand a Twiglet Economy

Government Makes New Zealand a Twiglet Economy

Monday 11th Jun 2001 Stephen Franks Media Release -- Economy

Australian fears that their competition law will make Australia a “branch economy” show our Commerce Amendment Act last month will make us no more than a twiglet on the Australian branch, ACT Commerce Spokesman Stephen Franks said today.

"Commerce Minister Paul Swain’s dropping of our current US style take-over law in favour of the UK/Australian model makes foreign domination even more certain.

"Australian Stock Exchange Chairman, Maurice Newman, warned last week that Australian competition laws are damaging Australian global competitiveness and making Australia a branch economy. These laws help foreigners acquire Australian businesses through interfering with growth within Australian. Transactions are blocked which “would not register on the radar screens of similar regulators overseas”.

"Commerce Minister Paul Swain forced through the recent changes to our Commerce Act to ape the Australians. He was warned that they were already wrong even in Australia. The Select Committee deadlocked on the Bill. Applied to our tiny market they are dangerous nonsense. But Mr Swain rejected precisely the arguments now advanced in Australia’s Committee for Economic Development, for criteria which focus more on global competitiveness.

"The twiglet economy risk is now much worse for New Zealand. The take-over law which takes effect next month all but locks New Zealanders out when a large control parcel is up for sale. The Government was warned of this too. Only bidders who can afford the risk of being forced to buy the whole company can bid for a control stake. New Zealanders saw how this damaged Brierley when it bid for Thistle in the UK. They will not want to repeat that here.

"For example, the new take-over law is likely to mean that control of Air New Zealand goes overseas, entirely unnecessarily, and forever.

"Populism pushed Mr Swain into this. Ignorance of business here, and of overseas led him in this bad law making.

"It will see head offices disappearing even faster, along with ambitious New Zealanders. Our best and brightest want to be where the instructions come from, not where we have to jump to them. They will go to have more scope than the Government’s twiglet economy will provide," Stephen Franks said.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Legal Issues: Gordon Campbell On The Commerce Commission Fuel Report

Yesterday’s interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public.

Apoparently, the fuel industry is an oligopoly where the Big Three (BP, Mobil and Z) that import 90% of this country’s fuel also control the supply, pricing, profit margins etc etc, from wharf to petrol pump, thereby all but throttling genuine competition at every stage along the way. More>>

 

Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>

ALSO:

Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>

ALSO:

Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>

ALSO:

Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

ALSO:

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>

ALSO:

IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>

ALSO:

Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

PM's Post-Cab: Bad Mail

Cabinet was updated on the process around prisoners sending mail, following the accused Christchurch gunman sending letters that "should have been stopped". All mail of "high concern prisoners" will now be checked by a specialist team and a changes to the legal criteria for witholding mail are expecting to go to a cabinet committee in this parliamentary session. More>>

Welfare: Ongoing Drug-Test Sanctions Contradicts Govt’s Rhetoric

Reports that two-thirds of beneficiaries who fail drug tests are still having their benefit sanctioned contradicts the Government’s so-called health approach to drugs. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels